Spot gold prices held steady just below a seven-week high on Thursday, as violence in Libya continued to buoy safe-haven demand in bullion and high oil prices, which have triggered inflation fears, also lent support. As many as 1,000 people may have been killed in the unrest.
On Wednesday, thousands celebrated as the east broke free of the control of Mummar Gaddafi, who has vowed to crush the revolt. "People don't have much confidence that the Libya crisis will be settled any time soon, so a lot of them are betting on gold," said a dealer in Singapore, "Gold will be king." Spot gold edged down 0.2 percent at $1,408.96 an ounce by 0634 GMT, off the seven-week high of $1,416.30 hit in the previous session. US gold futures inched down 0.3 percent at $1,410. Spot gold will test the January 3 high at $1,423.57 per ounce, based on its wave pattern and a Fibonacci projection analysis, said Reuters market analyst Wang Tao.
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